Turkish President Seeks Closer Economic Ties on State Visit to Iran

Visit takes place as historic rivals compete to influence conflicts in Yemen, Syria and Iraq

 

Turkey’s president sought deeper economic ties and common ground on Middle East conflicts during a visit to Iran on Tuesday, even as the longtime rivals compete to influence the outcome of wars in Yemen, Syria and Iraq.
Recep Tayyip Erdogan’s meeting with Iranian President Hasan Rouhani, on the heels of Tehran’s framework nuclear agreement with six world powers, marks Turkey’s push to reap a trade windfall if a final deal is reached that would lift sanctions on Iran.
It was an indication of how the prospect of an end to Iran’s isolation is already starting to recalibrate regional balances, spooking rivals led by Saudi Arabia and enemies such as Israel, while beckoning businesses from China to the West.
The two leaders tried to play down their foreign policy differences at a news conference where no questions were allowed.
They stressed their determination to fight terrorism, pledged to boost trade, and unveiled agreements to bolster cooperation in areas ranging from health-care to the environment and small business.
Mr. Rouhani said the neighboring countries were on the same page about ending the war in Yemen, where Turkey supports a Saudi-led Sunni coalition against Iran-backed Shiite Houthi rebels.
Mr. Erdogan also tried to sidestep sectarian tensions between the countries, pressing for an end to conflicts in Iraq and Syria.
“The region is practically a ring of fire,” Mr. Erdogan said.
“I am not concerned about Shiite nor Sunnis....Many people are dying. It’s impossible to accept this. Therefore we must come together, sit, talk, negotiate the matter and put an end to this bloodshed, these deaths.”
The comments by the two presidents hark back to joint calls by Iran and Turkey for peace efforts since the 2011 outbreak of the Syrian conflict.
With Turkey seeking to oust Iranian-backed President Bashar al-Assad, their joint promises to push for peace never materialized.
But regional competition didn’t deter Mr. Erdogan’s push to capitalize on years of diplomatic and economic support for Iran when it came to international pressure over its nuclear program—a rare bright spot in the relationship.
The Turkish president pledged to buy significantly more natural gas from Iran if it lowers the price—a long-standing dispute that is the subject of a continuing arbitration.
He also called for the counties to start trading in their local currencies to avoid being pressured by the dollar and the euro.
Ankara’s past efforts to shield Iran from sanctions strained Turkey’s ties with its North Atlantic Treaty Organization allies and threatened to isolate the country as uprisings destabilized the Middle East.
Now, Turkey’s government is pushing to triple bilateral trade with its eighth largest trading partner to $35 billion by 2016, and to secure energy deals and boost exports.
“Turkey is the most prepared country for Iran to be free of sanctions, for Iran’s economy to normalize,” Turkish Economy Minister Nihat Zeybekci said Monday.
But the tensions that impede closer ties were on display just before a meeting Tuesday of a bilateral forum established last year to facilitate greater trade and other economic ties between the two countries.
The gathering in Tehran of the Turkey-Iran High Level Cooperation Council was almost derailed after Mr. Erdogan accused Iran of waging proxy wars in the Middle East and threw Turkey’s weight behind the Saudi-led military operations in Yemen.
Turkey’s Sunni president also said Iran is backing Shiite militias in Iraq and Syria against Islamic State with the aim of filling the vacuum with groups loyal to Tehran.
“Iran is simply trying to dominate the region,” Mr. Erdogan said late last month, calling on Tehran to end military campaigns in Yemen, Iraq and Syria. “This has started to bother a lot of countries in the region, including us, Saudi Arabia and the Gulf nations.”
Following the Turkish leader’s comments, some Iranian lawmakers called on their president to cancel Tuesday’s summit, and 65 parliamentarians sent a letter to Mr. Rouhani demanding an apology from Mr. Erdogan.
Yet the Turkish leader didn't backtrack during the joint news conference with Mr. Rouhani.
On Monday, Mr. Erdogan met with Saudi Deputy Crown Prince Mohammed bin Nayef—credited with building the kingdom’s counterterrorism efforts. The surprise visit just before Mr. Erdogan’s Tehran trip was seen as a confirmation of the Turkish-Saudi alliance against Iran in Yemen and the region.
Turkish-Iranian relations have become more complicated since the Arab Spring uprisings began four years ago. Before that, Ankara voted against a United Nations Security Council resolution for additional sanctions on Iran despite strong NATO criticism.
In the following years, Turkey boosted gold exports to Iran to pay for oil and gas imports—a move that helped Tehran skirt sanctions and pad central bank reserves after it was blocked from the international banking system. Iran is energy-starved Turkey’s second biggest provider of oil and gas.

http://www.wsj.com/articles/turkish-president-on-state-visit-to-iran-seeking-closer-economic-ties-1428411176